DraftKings and Fanatics Halt Utah Prediction Market Trading

Utah’s regulatory stance on event-based contracts has forced major online platforms to adjust their state operations. Following the Utah Attorney General’s Office filing criminal charges against Kalshi and two of its executives, DraftKings and Fanatics announced they are ceasing new trades for Utah-based customers.

DraftKings confirmed to FOX 13 News that sports, novelty, political, and specific event contracts are no longer available to users physically located in Utah as of immediately. The company noted that customers can still trade financial event contracts related to stocks, commodities, and cryptocurrency. Open positions in the affected markets will remain active and settle according to standard procedures.

Fanatics stated its prediction markets will stop offering new contracts to Utah residents effective November 4. Robinhood also issued a statement to FOX 13 News, noting that beginning November 2, it would restrict Utah customers from entering new positions on sports, culture, elections, and politics. Those users will retain access to finance and economics categories.

The companies did not explicitly link their decisions to the legal action against Kalshi, but the timing aligns with the filing of felony-level gambling-related charges against the firm, its CEO, and its COO. The executives have been ordered to appear before a judge in Salt Lake City’s 3rd District Court in December.

Attorney General Derek Brown commented on the market reaction in a statement to FOX 13 News. He said, "Utah law is clear: gambling is illegal in our state. Some of the largest online gambling apps are now pulling out of Utah. I appreciate these companies being responsive to our efforts. It is the right outcome for Utah families who want gambling's harms kept out of their homes and communities. We will continue to enforce Utah law against any company that brings gambling into Utah."

The legal dispute centers on whether prediction markets constitute gambling under Utah’s constitutional prohibition on gaming or fall under federal jurisdiction governed by the Commodity Futures Trading Commission. Kalshi preemptively sued Utah to block state enforcement, but a federal judge denied the request. A federal appeals court later upheld the decision, allowing Utah to proceed. Dozens of states filed a friend of the court brief supporting Utah, while the Trump administration filed a similar brief siding with Kalshi.

In addition to the criminal charges, the CFTC filed a lawsuit against Utah alleging federal authority over prediction markets. The Utah Attorney General’s Office also filed a civil lawsuit against Kalshi. Conviction on the criminal charges could result in prison sentences for the company’s executives.